Concessionaires and vendors in Baldwin County, Alabama may be required by the County or property owner to obtain a Concessionaire Bond as part of their contract or agreement to utilize public or private space. This surety bond, offered by Jet Insurance Company, is a guarantee to the County or property owner that damages caused by the concessionaire will be covered up to the bonding limit.
Baldwin County or a local property owner/manager requiring the bond will be called an obligee if they require the concessionaire bond (in surety bond speak). The obligee requires the bond to protect themselves if the concessionaire fails to pay rent, fees, or causes damage to the property. Damages could even include neighboring concessionaires. Imagine a hot dog vendor leaving food out for several days attracting vermin that proceed to tear up t-shirts from the vendor next door to make nests. Great for the rats, bad for business, and somebody has to pay for the shirts. If the hot dog concessionaire bails, then Jet will have to take care of the fiscal damages.
The cost of the bond is based on the bond amount set by the obligee (entity requiring the bond). With Jet, the cost of the bond is just a small percentage of the bond limit and starts at a minimum $100 charge. For example, a bond amount of $10,000 would result in a $100 bond price.
However, Jet does factor in the credit worthiness of the applicant. The better the credit, the less likely a concessionaire will bail after leaving the hot dogs out.
You can easily apply and purchase the bond online with Jet by clicking on the link above. We ask for some basic business information and the name of who is requiring the bond. We do need you to provide your social security number for a soft credit check. The whole process takes a couple of minutes and you will be able to purchase your bond online.
The original bond must be sent to the obligee or entity requiring the bond, as the bond is for their benefit (they just make you pay for it). You can have Jet send the original bond form to the obligee or request to have it sent to you for filing purposes.
If at any time you need to cancel the bond, just email us at [email protected]. We will request cancellation from the obligee. Once granted, there will be a 30-day grace period where the bond will remain active before Jet is relieved of it’s liability.
Should you need to have the bond for over a year, it will need to be renewed with Jet. We will send a renewal invoice prior to the bond’s expiration date. All you need to do is make payment to keep the bond going.
Any bond documentation going to the County of Baldwin would need to be sent to the following location:
312 Courthouse Square Suite 12
Bay Minette, AL 36507
A concessionaire needs to abide by the contract they enter into in order to gain access to the property at which they are going to conduct business in. They must pay agreed upon fees and/or rental costs. Any damages to the premises must be fixed or paid for by the concessionaire. The obligee can make a claim on the bond for any infraction that causes them a loss, so know your contract well.
If a bond claim comes against you, notify Jet right away and provide any documentation you have (the contract you entered for starters). Jet will defend you against frivolous or unfounded claims.
Should the claim be valid, Jet must make payment to the damaged party, but not to exceed the bond limit. The concessionaire will be expected to pay Jet back for the claim amount paid out. The bond is a guarantee of payment, like a letter of credit, and not typical insurance. The premiums are low, but the principal (party who purchases the bond) is expected to pay back Jet for any losses sustained.